There’s been a recent announcement in the sales tax industry that I’d be remiss if I didn’t mention it here. Just this week Thomson Reuters announced a pending sale of their Indirect Tax Managed Service business to KPMG.
This may not seem like big news, but in the sales tax outsourcing arena, it doesn’t get much bigger than this. Thomson Reuters was/is the largest sales tax outsourcing provider in the country. Their decision to sell this business will have huge ramifications throughout the sales tax industry. The move expands KPMG’s footprint in sales tax outsourcing that was largely initiated by their previous acquisition of Alternadev several years back.
These are two 800-lb gorillas….one deciding to vacate the space and the other deciding to invest. The reasons? Not clear at this point. Perhaps Thomson Reuters’ desire to focus on their core software business is driving things from their side. KPMG’s desire to have closer relationships with many of the largest businesses in the country may be the driving force for them. I have some additional thoughts but I believe I’m too close to the situation to comment – the core business that is being sold is the former Tax Partners business that I started in 1998 and sold to, what was then, The Thomson Corporation in 2005.
Curious how you see this impacting the sales tax industry. Comments?
Other recent “Sales Tax Outsourcing” posts by Robert Dumas:
- Outsourcing the Sales Tax Department: 4 Key Factors to Consider
- Sales Tax Outsourcing - You Can't Be Half Committed
- Sales Tax Outsourcing – Walking the Performance Tightrope
- Sales Tax Outsourcing - Cost Reduction Not the Priority
- What Does KPMG Sales Tax Buy Mean to Small – Midmarket?